Carbon Removal Newsroom

U.S. Government Becomes a CDR Buyer

Oct 17, 2023

The podcast discusses the US government's announcement to purchase carbon removal and the $35M fund allocated for procurement. They explore the challenges of scaling up carbon removal without a compliance market. The panel also talks about the role of private buyers and compliance markets in driving CDR growth until 2030. They discuss the regulation of dumping materials into the ocean by the London Convention and the Regeavit protocol for carbon dioxide removal. Expectations and concerns regarding government involvement in scaling CDR are also discussed.

33:26

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Quick takeaways

The U.S. Department of Energy has allocated $35 million to procure carbon removal credits, supporting four different pathways and aiming to encourage innovation and industry growth.

Government procurement of carbon removal is essential to achieve economies of scale and knowledge diffusion, but current efforts are relatively modest, requiring more substantial funding and engagement to drive progress in scaling carbon removal technologies.

Deep dives

U.S. government announces purchase of carbon removal

The U.S. Department of Energy (USDOE) has announced a $35 million fund to procure carbon removal credits. The fund aims to support four different pathways: direct air capture with storage, biomass with carbon removal and storage, enhanced weathering and mineralization, and planned or managed carbon sinks. This initiative is expected to help build standards for successful carbon dioxide removal (CDR) programs and create a market to encourage innovation and industry growth. While the funding amount may be relatively modest, it can still provide a signal to encourage more government support for CDR and potentially galvanize states to develop their own programs.

Introduction

2min

US Department of Energy's $35 million procurement prize for carbon removal

16min

Private buyers and the role of compliance markets in driving CDR growth until 2030

1min

Regulation of Dumping Materials into the Ocean by the London Convention and London Protocol

5min

The Regeavit Protocol: A New Approach to Carbon Dioxide Removal

5min

Expectations and Concerns in Government's Involvement in Scaling CDR

4min

A few weeks ago, the US government announced it would directly purchase carbon removal. The Department of Energy released news of a $35 million fund to procure CDR credits. The prize fund will take the form of offtake agreements and cover four pathways.

More and more governments are funding CDR pilots, supporting research, and adding CDR targets to their climate plans. CDR has quickly entered an era of widespread support throughout North America and Europe.

But while the support is wide, it is also shallow; most policies take the form of modest grants or targets, with a few more ambitious countries leading the way.

Many CDR commentators have come to the conclusion that without a compliance market, carbon removal won’t ever scale up.

On this episode we asked our policy panel about recent government actions on CDR: will they work, are they enough, and what more needs to be done? Are today’s policies sufficient to get us where we need to go?

Radhika is joined by Wil Burns, Co-Executive Director of the Institute for Carbon Removal Law and Policy at American University, and Holly Jean Buck, Assistant Professor of Environment and Sustainability at the University at Buffalo.

On This Episode

Radhika Moolgavkar

Wil Burns

Holly Jean Buck

Resources

DOE Announces CDR Procurement

National Academy Report on CDR Research

DOE RFP for Responsible Carbon Management

Congress Members Letter on CO2 Pipelines

Heirloom commitment to DOE principles

Boston Consulting Group Report

Reykjavik Protocol